Google Inc. (GOOG)

 

Timeframe: short- mid-term

 

 

Overview:

 

Google is one of the most famous brands in the world and one of the leading global technology company. Beside the well-known search website, the corporation also offers other products or services such as the email service Gmail, the social networking platform Google+ and the Google Chrome web browser. In addition, the company als offers the geographical products Google Earth and Google Maps, and also hardware and software for smartphones and tablet computers. Google is also selling it´s own smarthphone (Nexus).

 

Since the beginning of 2015 the stock has established an uptrend, which is now in a correction (figure a).

 

figure a

figure a

 

 

We will now look at different scenarios, that might happen in the near future.

 

Scenario 1, figure b/c:

 

In figure b we see that the price has exactly arrived at the support zone. This consists of the 200 SMA and the recent high of the supporting trend line.

The first possibilty would be that the stock would bounce back from this support area and would go up to the last high (figure b).

 

figure b

figure b

 

 

A second possibility would be that the stock would make a larger correction before it goes up again (figure c).

 

figure c

figure c

 

 

Scenario 2, figure d:

 

An alternative scenario would be that the stock could also make a short scenario whereby the price would break through the current support zone. In this scenario the volume could rise again and the uptrend would come to an end.

We could perhaps see this new downtrend because right now the MACD is overbought.

 

figure d

figure d

 

 

Conclusion:

 

Right now we see an uptrend so we are looking for long trades. As long as the mentioned support zone is not broken, the bulls are in control.

It is also very important for a trader to look at the fundamental datas, as the company might release some very important press releases like quarterly earnings.

Especially since Google is well-know, the stock is not only traded by professional, but also by non professional traders. That means some news or rumors can have an impact on the stock price.

 

Disclaimer: Disclosure according to § 34b WpHG due to potential conflicts of interest:
The author is invested in the relevant securities or underlying securities at the time of publication of this Analysis

 

 

 

 

Google Inc. (GOOG)
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